Analysis of the impact of the discount rate of the National Bank of the Kyrgyz Republic on the cost of business loans: Theoretical and methodological aspects

Abstract

The article is devoted to the study of the discount rate of the National Bank of the Kyrgyz Republic (NBKR) and the analysis of its impact on the cost of loans for businesses. The discount rate is one of the instruments of monetary policy. Changing it allows you to control the inflation rate, influence the volume of loans and the level of business activity. The authors analyzed, from the point of view of theoretical and methodological aspects, the impact of changes in the discount rate and, consequently, the interest rates of commercial banks on lending indicators, which may depend on some features of the credit market, including how widespread the practice of setting floating loan rates is (the change in which is linked, for example, to changes in the discount rate rates), as well as early repayment of obligations and the debt structure of the real sector in terms of time. The article also presents the results of an analysis of the impact of changes in the discount rate on the formation of the cost of loans for businesses, as well as on the development of the banking sector in the Kyrgyz Republic within the framework of the trends approved in relation to it.